Bitcoin (BTC) Price Analysis: Rejected at $7,700 Again!
Bitcoin is consolidating inside an ascending triangle pattern as it formed higher lows and found resistance around $7,700. Price was rejected at the resistance again and looks ready for a test of support around $7,600.
A bounce off this area could take bitcoin back up to the resistance or even a break higher. A move below support, however, could lead to a downtrend of the same height as the chart pattern.
The 100 SMA is above the longer-term 200 SMA to indicate that the path of least resistance is to the upside. This suggests that support is more likely to hold than to break. However, the gap between the moving averages has narrowed enough to signal a potential bearish crossover. For now, the moving averages might hold as dynamic support since they are close to the triangle bottom.
RSI is starting to pull higher without even hitting oversold conditions. This suggests that buyers are eager to return to the game and might even be strong enough to push for an upside triangle break. Stochastic is also starting to turn higher and might draw bullish momentum back in.
Bitcoin remains supported by increased demand in Venezuela as citizens seek alternative ways for financing and investing or just moving out of the rapidly depreciating local currency. It also drew support from speculations that the SEC is not looking to regulate bitcoin since it is not a security.
However, the lack of strong positive catalysts has kept the digital currency in limbo for yet another week. In a few instances it was able to take advantage of anti-dollar flows as traders might be seeking safe-havens but are wary to bet on the dollar due to trade war concerns.
The upcoming G7 Summit could lead to fresh moves and might even revive optimism in the industry if leaders welcome bitcoin developments.